Allowed

Fathima Alis Rathimathul Fasia v. the State of Karnataka

Karnataka HC5 Sept 2024CRL.A/1527/2024

Case brief

AI extract

What is this about?

This criminal appeal sought to set aside the Principal Sessions Judge's order rejecting anticipatory bail. The High Court allowed the appeal, setting aside the lower court order and granting anticipatory bail to the appellants in the 'Make Free Trips' cheating case, subject to standard conditions including bond execution and cooperation with investigations.

What did the court decide?

The order of the Principal District and Sessions Judge rejecting anticipatory bail was set aside, and the appellants were granted anticipatory bail on standard conditions including execution of a bond

Fathima Alis Rathimathul Fasia Vs the State of… — Cheating and Forgery | Karnataka HC (2024)

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1 - NC: 2024:KHC:36883 CRL.A No. 1527 of 2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 5^TH DAY OF SEPTEMBER, 2024

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BEFORE

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THE HON'BLE MR JUSTICE MOHAMMAD NAWAZ CRIMINAL APPEAL NO. 1527 OF 2024

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BETWEEN:

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FATHIMA @ RATHIMATHUL FASIA W/O. BASHEER, AGED ABOUT 21 YEARS, R/AT ADARSHNAGARA HOUSE, PUTTUR TALUK, NEKKILADI, D.K DISTRICT-574325.

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MOHAMMED ASHRAF, S/O. ABDUL KHADRI, AGED ABOUT 33 YEARS, R/AT. COMBILAMANE, THEKKERU, D.K DISTRICT- 574241.

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Digitally signed by LAKSHMI T Location: High Court of Karnataka

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KISHORE B K S/O. BASHEER, AGED ABOUT 33 YEARS, R AT. NAGARBHAVI, BENGALURU DISTRICT-560072.

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(BY SRI. LETHIF B., ADVOCATE)

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…APPELLANTS

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AND:

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THE STATE OF KARNATAKA BY CHIKKAMAGALURU CEN POLICE STATION, CHIKKAMAGALURU DISTRICT, REP. BY SPP, HIGH COURT BUILDING, BANGALORE-560001

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…RESPONDENT

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2 - NC: 2024:KHC:36883 CRL.A No. 1527 of 2024

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(BY SRI.K.RAHUL RAI, HCGP)

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THIS CRL.A. IS FILED U/S.16 OF KARNATAKA PROTECTION OF INTEREST OF DEPOSITORS IN FINANCIAL ESTABLISHMENT ACT 2004 PRAYING TO SET ASIDE THE ORDER PASSED BY THE PRINCIPAL DISTRICT AND SESSIONS JUDGE AT CHIKKAMAGALURU, DATED 02.08.2024 IN CRL.MISC.NO.404/2024 AND CRL.MISC.NO.406/2024 FOR THE OFFENCE P/US/ 9 OF KPIDFE ACT, SEC.21(1)(2) AND (3) OF BUDS ACT AND SEC.420 R/W SEC.34 OF IPC AND GRANT ANTICIPATORY BAIL IN THE EVENT OF ARREST OF CHIKKAMAGALURU CEN CRIME POLICE STATION IN CR.NO.66/2024.

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THIS APPEAL IS COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

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CORAM: HON'BLE MR JUSTICE MOHAMMAD NAWAZ

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ORAL JUDGMENT

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This appeal is preferred under Section 16 of the Karnataka Protection of Interest of Depositors in Financial Establishment Act, 2004 (‘KPIDFE Act’ for short) to set aside the order dated 02.08.2024 passed by the Court of Principal District and Sessions Judge at Chikkamagaluru in Criminal Misc No.404/2024 and Criminal Misc No.406/2024 and consequently to release the appellants on anticipatory bail, in the event of their arrest in Crime No.66/2024 registered at Chikkamagaluru CEN Crime Police Station,

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for the offence punishable under Section 9 of the 1Karnataka Protection of Interest of Depositors in Financial Establishment Act, 2004 (KPIDFE Act, for short) Section 21(1)(2)(3) of the banning of unregulated deposit Schemes Act, 2019 and Section 420 r/w 34 of IPC.

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Heard the learned counsel for appellants,

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learned High Court Government Pleader for the State and perused the material on record.

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The complaint is lodged by one Rudresh G., son of late Gangegowda before the respondent police on 06.07.2024, based on which the aforementioned crime was registered against accused Nos.1 to 6. The appellants herein are arraigned as accused Nos.5, 3 and 4 respectively in the FIR.

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The gist of the complaint is that, in the month of March 2023, one Smt. Radha Rajkumar introduced her brother by name Raghu (accused No.6) to the

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1 Mentioned as Karnataka Protection of Interest Depositors Exorbitant Act, 2004, in FIR

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complainant, who explained to him about a scheme called ‘Make Free Trips’. A brochure regarding the said scheme was given to the complainant, as per which if amount of Rs.9,000/-, Rs.45,000/- and Rs.1,35,000/- was paid by the members, they will be taken on national and international tour for free etc. It is stated that under the said scheme several persons were taken to Goa and Orissa and the amount paid by them were also returned. Further, on 08.04.2023, the said accused No.6 along with accused Nos.1, 3 and 4 arranged a meeting at one Bindiga Resort in Karakanahalli wherein, 300 – 400 people participated and in the said meeting the accused persons induced them to join the scheme, assuring that they will be taken to Goa, Orissa and Dubai. They assured that everyday they will get a return of 4.5 dollars for about one year and thus their entire money will be returned.

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It is further alleged in the complaint that similar

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meetings were organized in the month of October and November 2023 at different hotels, wherein about 50

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5 - NC: 2024:KHC:36883 CRL.A No. 1527 of 2024

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persons participated and the accused persons induced them saying that the money which they deposited will be doubled and they will be sent on a foreign tour and also be given a gold coin, taken on a cruiser trip and also offered a Creta Car.

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It is further alleged that the complainant and his wife paid a total sum of Rs.4,50,000/- to the account provided by the accused persons and the accused had created an App and gave four IDs. They took about 50 persons to Dubai wherein, a meeting was held at a one landmark hotel. One Mohammed i.e., accused No.2 introduced himself as the CEO of ‘Make Free Trips’ and introduced accused No.1 as the CEO incharge in India etc.

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It is alleged, the accused have collected Rs.2,46,48,000/- from several persons with a promise of giving double the amount they paid etc., and only few were taken on tour as promised and others were not taken.

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It is alleged that the complainant and other

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similar persons did not receive the money as assured and they came to know that the App created in the name of ‘Make Free Trips’ was fake and when they tried to contact the accused persons, there was no response and accused No.1 though assured that the entire amount will be returned, without returning the amount as assured, cheated the complainant and other similar depositors.

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Learned High Court Government Pleader has contended that the accused started a scheme in the name

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‘Make Free Trips’ and lured the complainant and others to invest money in the said scheme, with an intention of cheating them and without returning the amount etc., as assured, committed various offences. He contended that the accused have started the scheme without necessary permission and as many as 100 to 200 people have invested money to the tune of crores of Rupees and therefore, the appellants are not entitled for the relief of anticipatory bail.

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The learned counsel for appellants has

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contended that the appellants are innocent of the alleged offence, the complaint averments does not show that the amount has been deposited with the appellants herein. On the other hand, the amount was alleged to be deposited in the account of one New Fly Smart Travel and Tourism, IDFC First Bank, furnished by accused No.1. He contended that even according to the complainant, several people were taken to different destinations like Goa, Orissa and Dubai and therefore, it cannot be said that the accused had an intention to cheat. He contended that appellant No.1 has been arraigned as an accused just because she happens to be the wife of accused No.1. He contended that there are no specific allegations against appellant Nos.2 and 3 and the learned Sessions Court has granted anticipatory bail to the appellants in another case registered in Crime No.51/2024 of Jayanagar Police Station, Shivamogga.

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The learned counsel submits that the appellants

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have no bad antecedents, they are permanent residents of the address shown in the cause title and they are ready and willing to cooperate with the investigation and abide by any conditions.

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The learned Sessions Judge while dismissing the anticipatory bail petition, has observed that there is specific allegation in the complaint that the appellants herein along with other accused persons have induced the complainant and other public to invest money and after their deposit/investment in the respective schemes, they did not return the amount. There are sufficient materials on record to show prima facie case against them. The statements of other prosecution witnesses are yet to be recorded and their interrogation is very much required. The investigation is going on and therefore, if they are released on bail, they will tamper the prosecution witnesses.

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A perusal of the complaint averments goes to show that initially the persons who joined the scheme and became members were taken to different destinations such as Goa, Orissa and Dubai and also on a Cruise Trip from Mumbai to Goa. It is alleged that the accused arranged meetings in different hotels and lured the persons attended assuring them that the money they invested will be doubled and they will be given gold coin, Creta Car etc.

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The complainant and his wife are alleged to have paid a total sum of Rs.4,50,000/- to the accused persons. However, it is not mentioned in the complaint as to which account of these appellants, the deposit was made. On the other hand, it is specifically mentioned that as requested by accused No.1, the complainant and his wife deposited a sum of Rs.2,70,000/- for a Dubai trip and Rs.1,80,000/- for a cruiser trip, in all a sum of Rs.4,50,000/- in IDFC First Bank account of ‘New Fly Smart Travels and Tourism’, Axis Bank account of ‘Nandini

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Holidays’ and HDFC account, provided by the said accused No.1. It is alleged, a cash of Rs.33,650/- was given to accused Nos.1, 3 and 4. Further, accused No.2 is alleged to have arranged a meeting in landmark Hotel in Dubai, introducing himself as the CEO of Make Free Trips and accused No.1 as the CEO in India. The said accused lured the members present to invest money, as told by accused Nos.1, 3, 4 and 6, assuring that they will be given double the amount invested by them.

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It is no doubt, the names of appellants are mentioned in the complaint. However, it is not specifically stated as to which account of the appellants, the amount collected by various persons were deposited. On the other hand it is specifically stated that the amount was deposited to the accounts provided by accused No.1. Further, accused No.2 introduced himself as the CEO of Make My Trips and lured the people to invest money etc.

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Learned counsel for appellants has made available a copy of the order passed by the Sessions Court

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in Criminal Misc No.891/2024 dated 03.09.2024, granting anticipatory bail to these appellants in Crime No.51/2024 registered at Jayanagar Police Station, Shivamogga, wherein similar allegations are made against them.

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The appellants have undertaken to cooperate with the investigation. The allegations against the appellants have to be established in due course. Hence, by imposing suitable conditions, relief sought can be granted. Hence, the following:

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ORDER

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Appeal is Allowed.

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The order dated 02.08.2024 passed by the Court of the Principal District and Sessions Judge at Chikkamagaluru in Criminal Misc Nos.404/2024 and 406/2024 is set aside.

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The appellants/accused Nos.5, 3 and 4 respectively shall be released in the event of their arrest in Crime

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NC: 2024:KHC:36883 CRL.A No. 1527 of 2024

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No.66/2024 of Chikkamagaluru CEN Crime Police Station,

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subject to following conditions:

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i. They shall appear before the Investigation Officer within a period of 10 days from the date of receipt of a copy of the order.

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ii. They shall execute a bond in a sum of Rs.2,00,000/- (Rupees Two Lakhs only) each, with two sureties for the likesum.

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iii. They shall be available for the purpose of investigation whenever required and shall cooperate with the investigation of the case.

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iv. They shall furnish proof of their residential address and shall inform the I.O/Court if there is change in the address.

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v. They shall not tamper or threaten the prosecution witnesses/evidence in any manner.

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vi. They shall be regular in attending the Court proceedings.

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SD/(MOHAMMAD NAWAZ) JUDGE

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HB/List No.: 1 Sl No.: 23

Fathima Alis Rathimathul Fasia v. the State of Karnataka

Case brief

What is this about?

What did the court decide?

Fathima Alis Rathimathul Fasia v. the State of Karnataka

Case brief

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What did the court decide?

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